Post by High Priestess on Feb 16, 2018 6:18:15 GMT
Airbnb is updating cancellation policies, making them more favorable to guests and bringing more concerns to hosts.
www.airbnb.com/home/updated_cancellation_policies#
For instance, for strict policy, which I have:
Previously, any guest who booked on strict cancellation policy, could NEVER get a full refund, regardless when they cancelled. If they booked a year in advance and cancelled the next day, they could not get a full refund. Or if they booked a year in advance and cancelled 10 months before the reservation, they could not get a full refund.
But now, apparently they can book a year in advance and cancel 30 days in advance of the arrival date, and STILL get a full refund.
"
THis would apply to reservations of less than 28 days in duration only.
What concerns me more than the getting a refund if cancelling 30 days or more in advance, is that now guests would be getting a refund automaticallly even if they cancel in the middle of their reservation! So they could book say a 21 day stay, and then on day 3, cancel the whole thing, and get a 50% refund of those remaining days. And if they have been holding those 21 days for several months, and the host doesn't get many reservations, this could be quite a hardship on that host.
Previously, guests booking on strict policy could not get a reservation if they left early. Now, anyone could leave early and be sure to get some refund of the remaining days. This is more unfair to hosts who dont' easily get replacement reservations quickly ...for instance, hosts whose bookings are mostly bookings done well in advance.
I am also concerned about the change in the long term policy. Because if you read the new long term cancellation policy, they are now also allowing a guest who books a long term reservation, to ALSO get a full refund if they cancel 30 days in advance. THis means, someone could book a yearlong reservation for your apartment starting in 6 months, hold that space for 5 months, and then cancel 30 days before arrival, leaving you high and dry with no income at all.
To be sure, the previous long term policy did not allow you to collect a year's income for a cancellation of a yearlong reservation (which is unusual duration for an Airbnb booking...but it is possible....most of my long term bookings are 2-4 months though) But it would allow you to keep the first month's payment if the guest cancelled at any time after booking.
So, if a guest booked a 4 month stay, and then cancelled the entire stay 2 months before arrival, previously you would be able to keep the first month's payment. Now, you would get nothing if they cancel more than 30 days before arrival.
Some will say "well you can easily get another renter if they cancel a full 30 days before arrival"...but what if this person had been holding 4 to 6 months of your calendar blocked for many months? Does that seem fair that they can just do that with no consequence?
In fact, this new policy could potentially lead guests to make bookings they have no intention of keeping, as there is now essentially no penalty for booking and cancelling 30 days in advance.
I predict more hosts will start shutting off their calendars over 30 days in advance, no longer allowing guests to book more than one month out.
www.airbnb.com/home/updated_cancellation_policies#
For instance, for strict policy, which I have:
Previously, any guest who booked on strict cancellation policy, could NEVER get a full refund, regardless when they cancelled. If they booked a year in advance and cancelled the next day, they could not get a full refund. Or if they booked a year in advance and cancelled 10 months before the reservation, they could not get a full refund.
But now, apparently they can book a year in advance and cancel 30 days in advance of the arrival date, and STILL get a full refund.
"
THis would apply to reservations of less than 28 days in duration only.
What concerns me more than the getting a refund if cancelling 30 days or more in advance, is that now guests would be getting a refund automaticallly even if they cancel in the middle of their reservation! So they could book say a 21 day stay, and then on day 3, cancel the whole thing, and get a 50% refund of those remaining days. And if they have been holding those 21 days for several months, and the host doesn't get many reservations, this could be quite a hardship on that host.
Previously, guests booking on strict policy could not get a reservation if they left early. Now, anyone could leave early and be sure to get some refund of the remaining days. This is more unfair to hosts who dont' easily get replacement reservations quickly ...for instance, hosts whose bookings are mostly bookings done well in advance.
I am also concerned about the change in the long term policy. Because if you read the new long term cancellation policy, they are now also allowing a guest who books a long term reservation, to ALSO get a full refund if they cancel 30 days in advance. THis means, someone could book a yearlong reservation for your apartment starting in 6 months, hold that space for 5 months, and then cancel 30 days before arrival, leaving you high and dry with no income at all.
To be sure, the previous long term policy did not allow you to collect a year's income for a cancellation of a yearlong reservation (which is unusual duration for an Airbnb booking...but it is possible....most of my long term bookings are 2-4 months though) But it would allow you to keep the first month's payment if the guest cancelled at any time after booking.
So, if a guest booked a 4 month stay, and then cancelled the entire stay 2 months before arrival, previously you would be able to keep the first month's payment. Now, you would get nothing if they cancel more than 30 days before arrival.
Some will say "well you can easily get another renter if they cancel a full 30 days before arrival"...but what if this person had been holding 4 to 6 months of your calendar blocked for many months? Does that seem fair that they can just do that with no consequence?
In fact, this new policy could potentially lead guests to make bookings they have no intention of keeping, as there is now essentially no penalty for booking and cancelling 30 days in advance.
I predict more hosts will start shutting off their calendars over 30 days in advance, no longer allowing guests to book more than one month out.
